156 results for 'cat:"Fraud" AND cat:"Securities"'.
J. Gorton partially allows a company’s motion to dismiss claims of securities fraud and tortious interference with a contract brought against it via class action by an asset management firm. It is unclear at this time if the firm’s claim of tortious interference with a contract is untimely. The firm’s securities fraud claims are untimely. The firm’s amended complaint cannot be dismissed for failure to state a claim because it plausibly argues that the company acted without justification by deliberately avoiding following the rights agreement they were obligated to follow.
Court: USDC Massachusetts, Judge: Gorton, Filed On: August 18, 2023, Case #: 1:22cv11315, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Contract
J. Robart grants the pension trust's motion to appoint it as the lead plaintiff in this securities fraud class action accusing Funko and two of its executive officers of not disclosing material facts about Funko's business and operations and artificially inflating its common stock. The pension trust should be the lead plaintiff because it has the largest financial interest in this case, with losses totaling $619,800, and the pension trust established a prima facie showing of typicality and adequacy by proving that it purchased Funko shares and basing its claims on the same legal theories as the rest of the class.
Court: USDC Western District of Washington, Judge: Robart, Filed On: August 17, 2023, Case #: 2:23cv824, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Johnson denies the securities sellers' motion for summary judgment, ruling the promissory note signed over to them by the investor qualifies as a security under federal law, while statements about the startup's income, which is purported to be $10 million but is actually less than $100,00 annually, and the potential return on investment are sufficient at this stage to show reckless disregard on behalf of the sellers.
Court: USDC New Mexico, Judge: Johnson, Filed On: August 15, 2023, Case #: 1:21cv564, NOS: Other Contract - Contract, Categories: fraud, securities, Contract
C.J. Johnson denies the startup's motion for summary judgment, ruling disclosures about its stock price to the investor were not sufficient for the investor to believe there was an obvious risk he would lose his entire $750,000 investment. Furthermore, the claim he did not read the promissory note before signing it is irrelevant because the note said nothing about the company's performance, only that his money would be repaid with interest within one year.
Court: USDC New Mexico, Judge: Johnson, Filed On: August 15, 2023, Case #: 1:21cv564, NOS: Other Contract - Contract, Categories: fraud, securities, Contract
J. Pitman denies a broker’s motion to dismiss a lawsuit brought by financial regulators over his role in an alleged “massive fraudulent binary options trading scheme.” The broker, a Canadian, argued this court did not have jurisdiction, but the broker absolutely had sufficient contacts in the United States to give federal courts jurisdiction, including because he “singled out customers in the United States.”
Court: USDC Western District of Texas , Judge: Pitman, Filed On: August 15, 2023, Case #: 1:20cv908, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Jurisdiction
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J. Wesley finds that the district court improperly certified a class of shareholders on remand of claims contending executives committed securities fraud in statements concerning the management of conflicts of interest at Goldman Sachs because shareholders did not establish a firm link between Goldman's corrective disclosures on conflict and prior alleged misstatements that caused stock prices to drop. Reversed.
Court: 2nd Circuit, Judge: Wesley, Filed On: August 10, 2023, Case #: 22-484, Categories: fraud, securities, Class Action
Chancellor McCormick finds that an investor was fraudulently induced to invest in a cancer research foundation that promised a commercialized test to diagnose individuals with high risk for breast cancer. Through these misrepresentations, the investor prevails on four claims for breach of contract, declaratory relief, violation of the Delaware Securities Act and fraudulent inducement.
Court: Delaware Chancery Court, Judge: McCormick, Filed On: August 10, 2023, Case #: 12438-CM, Categories: fraud, securities, Contract
[Consolidated.] Per curiam, the circuit finds that the district court properly awarded $16.8 million to the liquidation trustee for Bernard L. Madoff Investment Securities as money owed for recoverable transfers from the Madoff Ponzi scheme. The "net investment method" used to value accounts has been the preferred construct for Madoff clients, since going by "profits" recorded over time on customer statements would be illusory. Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: August 10, 2023, Case #: 22-1107(L), Categories: fraud, securities
J. Stein dismisses this securities class action against the Chinese news-aggregation app, its directors and officers, and its corporate underwriters relating to its IPO. The investors have not stated with sufficient particularity that the app intentionally placed illegal ads on its platform but failed to disclose that strategy.
Court: USDC Southern District of New York, Judge: Stein, Filed On: August 3, 2023, Case #: 1:20cv6707, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Stewart finds the trial court properly convicted defendants for conspiracy to commit wire fraud affecting a financial institution, conspiracy to commit securities fraud, and eight counts of aiding and abetting securities fraud. In “a classic Ponzi-like scheme,” defendants transferred money from one fund to pay distributions to another fund’s investors. Though several claims of error are argued, none rise to abuses of discretion or other reversible error. No statements made by the prosecutor prejudiced defendants’ substantial rights. Time limits did not jeopardize the trials fairness. Cumulative error is inapplicable. Affirmed.
Court: 5th Circuit, Judge: Stewart, Filed On: July 31, 2023, Case #: 22-10511, Categories: Fair Trial, fraud, securities
J. Hunt partially grants a group of Doe stock market traders' motions to dismiss securities fraud claims brought by a stock broker firm. The firm claims the Doe traders made and cancelled trades in rapid succession amid a market dip in 2015, creating a false market midpoint for S&P 500 index options and allowing the Does to sell the put options at artificially inflated prices. The stock firm has plausibly alleged its manipulation, scienter and loss causation claims, but not its Illinois Securities Laws of 1953 violation claim.
Court: USDC Northern District of Illinois, Judge: Hunt, Filed On: July 27, 2023, Case #: 1:20cv4947, NOS: Other Statutory Actions - Other Suits, Categories: fraud, securities, Trade
J. Dever denies, in part, an individual's motion to dismiss an investment company's claims related the individual's alleged misappropriation of funds from its virtual wallet. The company sufficiently pleads its claims for conspiracy and conversion.
Court: USDC Eastern District of North Carolina, Judge: Dever, Filed On: July 25, 2023, Case #: 5:22CV503, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, securities, Conversion
J. Gordon dismisses a counterclaim brought by the borrower who defaulted in this suit brought by the lenders on allegations of fraudulent transfer of stock. A breach of fiduciary duty claim alleges the stock transfer resulted in unjust enrichment to the company owners while they failed to pay the debt. The owners say the lenders intentionally assisted the breach of a duty through their interaction with other parties, and the "shifting" allegations do not give the lenders fair notice of who is asserting the claim, in what capacity, and on what factual basis.
Court: USDC Nevada, Judge: Gordon, Filed On: July 25, 2023, Case #: 2:22cv1206, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, securities, Fiduciary Duty
J. Peterson denies the brother's motion to dismiss the sister's lawsuit, which alleges that the brother and the corporate officer fraudulently induced her to sell her 20% ownership interest in her family's company for $1.3 million, only for the brother and the corporate officer to sell the company for $162 million 15 months later, denying her $32 million in the process. The sister plausibly alleges that the brother and the corporate officer fraudulently induced her to sign the redemption agreement because they withheld key information, such as how the brother and the corporate officer regularly received offers to buy the company, which could have changed her mind about selling her shares at that time.
Court: USDC Western District of Wisconsin, Judge: Peterson, Filed On: July 24, 2023, Case #: 3:22cv400, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Contract
J. Peterson denies the brother, corporate officer and company's motion to dismiss the sister's lawsuit claiming she was deceived and pressured into selling her 20% ownership interest in the family business for $1.3 million before the brother sold the company one year later for $162 million, effectively defrauding her of around $32 million she would have received from the sale if she had not unloaded her shares at a falsely deflated value. The sister has pleaded her claims, including those for federal-law securities fraud and state-law fraud, breach of fiduciary duty and civil theft, with sufficient clarity and specificity, so all 15 claims survive.
Court: USDC Western District of Wisconsin, Judge: Peterson, Filed On: July 24, 2023, Case #: 3:22cv400, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Fiduciary Duty
J. Young declines to dismiss the investors' securities action against software company Pegasystems and its CEO after the company was ordered to pay more than $2 billion for stealing another company's trade secrets. It can be inferred that the CEO "was aware of, participated in, and directed" Pegasystems' espionage against the other company, and that Pegasystems rewarded the authors of the conspiracy with cash bonuses. The investors sufficiently allege that Pegasystems deceived them when it promised to never use illegal means to acquire a competitor's trade secrets and when it later reassured the investors that the other company's claims were without merit.
Court: USDC Massachusetts, Judge: Young, Filed On: July 24, 2023, Case #: 1:22cv11220, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Sykes finds that the investors did not prove their securities fraud claims alleging that the attorney is liable for damages regarding their $360,000 investment into a failed jet fuel proposition. The investors do not prove that the attorney sold or offered to sell the investors security. They provide only an email from the attorney and the company's managing member soliciting investment money for the jet fuel transaction, which does not qualify the attorney as a seller for the purposes of a securities or fraud claim.
Court: USDC Central District of California, Judge: Sykes, Filed On: July 17, 2023, Case #: 8:21cv389, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
J. Ramos grants the cryptocurrency seller's motion to set aside a default judgment in favor of investors who allege securities fraud, violations of the Racketeer Influenced and Corrupt Organizations Act, and various common law causes of action. The seller filed his motion to set aside the judgment more than 2 years after it was entered on the basis that he was unable to answer the complaint because he was incarcerated and subject to COVID-19 lockdown protocols. The investors would not be prejudiced by setting aside the judgment and make no argument showing that litigating the claims would lead to discovery difficulties. The seller is currently incarcerated, giving him no greater opportunity for fraud upon vacating the default.
Court: USDC Southern District of New York, Judge: Ramos , Filed On: June 30, 2023, Case #: 1:20cv4650, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Racketeering
J. Carter grants the SEC's motion for summary judgment for liability as to the investment advisor's violations of several securities and investing acts. The advisor was convicted criminally for securities fraud, investment adviser fraud and wire fraud, having used investor funds to pay for company operational expenses and for his personal benefit. There is ample undisputed evidence in the civil and criminal record satisfying the elements necessary to prove liability for the violations.
Court: USDC Southern District of New York, Judge: Carter , Filed On: June 29, 2023, Case #: 1:19cv5895, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
[Consolidated.] J. Silvain grants, in part, the bankrupt company's motion to compel discovery in a fraudulent inducement case, ruling that inquiries about the purchasing company's financial state at the time it failed to make payments to the bankrupt company, which ultimately led to its dissolution, are integral to the case and must be answered with financial documents or other relevant information.
Court: USDC Southern District of Ohio, Judge: Silvain, Filed On: June 27, 2023, Case #: 3:17cv347, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Discovery
J. Stadtmueller grants the SEC's motion to amend a judgment entered against the investors who perpetrated a fraudulent investment scheme targeting Hmong-Americans in Wisconsin and Minnesota which unlawfully raised more than $16 million, and the judgment is amended to reflect the investors' permanent ban from violating two additional sections of the Securities Act. It is further ordered that the investors are barred for two years from making any filings in any case that do not adhere to federal court rules, and the SEC's motion to strike some of these recent inappropriate and nonsensical filings, including those alleging a nonexistent contractual relationship between them and the SEC, is granted.
Court: USDC Eastern District of Wisconsin, Judge: Stadtmueller, Filed On: June 21, 2023, Case #: 2:22cv450, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Enforcement Of Judgments